Lexicon Genetics said Monday it is scaling down its genetic research and will eliminate 18 percent of its staff as it focuses on drug discovery and development.

The Woodlands-based company, which develops genetically engineered mice to help in human drug development, said the cuts will affect 133 of 592 employees in its headquarters.

"We believe we can grow into a next-generation pharmaceutical company," said Arthur Sands, Lexicon's president and CEO. "That growth will be in the areas of pharmaceutical development, marketing and commercialization."

Sands said in the coming years the company plans to begin human trials with 10 drug candidates it has developed, including drugs to treat Alzheimer's, irritable bowel syndrome and rheumatoid arthritis.

To reflect the strategy, the company said it will change its name to Lexicon Pharmaceuticals.

"It's a 'show-me-the-drugs' position," said Steve Brozak, an analyst for WBB Securities. They are focusing on getting "clinical validation" so they can prove they have marketable products.

Kantor said Lexicon has a "high likelihood" of signing a partnership soon for one of its drugs in human or animal testing because large drug makers are hungry for products in early phases of development that could serve large numbers of patients.